The following Letter Type C, or variations thereof, was submitted by individuals or entities.
Letter Type C:
Dear Chairman Schapiro:
As an investor in money market funds (MMFs), I want to go on record as strongly opposing proposals under consideration at the Securities and Exchange Commission that would destroy the value of these funds and make it harder for me to manage my money and reach my financial goals.
In particular, I am opposed to plans that would force MMFs to abandon their stable $1.00 per-share price or would impose both unrealistic capital buffers and redemption freezes that would deny me full access to my cash when I want or need it.
Like other investors, I value MMFs for the stability, convenience, and liquidity they provide. A government-imposed redemption freeze on MMFs would make these funds the only mainstream financial product that routinely tells customers they can't get all of their money when they want it. That change could cripple sweep accounts, check-writing, and many other features that MMF investors depend on.
Forcing funds to abandon the $1.00 share price and "float" their value would hit investors with a bookkeeping nightmare, as we'd have to track microscopic capital gains and losses every time we buy or redeem MMF shares. Either of these changes probably would force me and millions of other investors to stop using MMFs, even though the alternatives don't offer the same flexibility, yield, and ability to receive tax-exempt interest.
Strict regulation and professional management of MMFs have produced an outstanding record of stability for 40 years, and new regulations issued since the financial crisis have made these funds stronger and more resilient. I hope the SEC will listen to the voices of investors and abandon any proposals that would destroy the value of money market funds.